CMA unveils draft regulation for Oman's insurance brokerage firms

06/04/2015 07:26 AST

A new draft regulation for insurance brokerage firms has been unveiled by the Capital Market Authority (CMA).

Insurance brokerage firms in Oman have been given two weeks to provide feedback on the new regulation, which will be incorporated in the new rules if it is necessary, a highly placed official at the CMA told Times of Oman.

The major highlights of the new regulation include management of credit facilities between client and brokerage firms, minimum capital requirements and the separation of direct brokerage businesses from re-insurance businesses.

'Safe services'

"We are trying to enhance the role of brokerage firms in the market. Also, the new regulation is focusing on protecting the interest of policy holders, and provide them with efficient and safe services," Ahmed bin Ali Al Ma'amari, director general supervising the insurance sector at the CMA, told Times of Oman.

"We are trying to improve the level of management and payment systems within the brokerage and insurance industry."

Al Ma'amari noted that CMA seeks to support brokerage firms, which are vital in providing efficient services.

"They represent clients and, therefore, they protect the interest of customers. They can provide the best advice, service and prices to their customers. It will also enhance competition," added Al Ma'amari.

The new regulation will become an executive rule before year-end, after receiving feedback from all stakeholders.

Oman has 36 insurance brokerage firms, 22 insurance firms, including two Islamic insurance firms or takaful firms, and one reinsurance firm. Oman's insurance premium surged ahead 10 per cent to OMR400.4 million in 2014, from OMR364 million in the previous year.

Total direct net premiums rose by 13 per cent in 2014, compared to the same period in 2013, as health insurance and other insurance achieved the highest growth rates, compared to other types of insurance, which rose by 69 per cent and 17 per cent, respectively, compared to 2013.

Times of Oman